Polkadot price has lagged behind other leading layer 1 tokens in 2024 due to ongoing concerns about its ecosystem. DOT has declined by over 20% this year, while coins such as Ethereum, Tron, Toncoin, and BNB have experienced double-digit gains.

The underperformance of Polkadot is partly attributed to the perception that its ecosystem is weaker compared to peers like Ethereum and Solana. For instance, Ethereum’s ecosystem includes major players like Lido, Maker, Compound, RocketPool, Uniswap, and Aave.

Similarly, Solana hosts popular meme coins like dogwifhat (WIF), Popcat, and Book of Meme (BOME), and it features fast-growing DEX exchanges such as Raydium, Orca, and Jupiter.

Third-party data indicates that Polkadot’s ecosystem has not been as active. This is one reason why its token has underperformed, leading some investors to view it as a ghost chain. Data from DeFi Llama shows that Acala Network’s total value locked (TVL) has decreased to about $60 million, and the amount of stablecoins on its platform is just $61,000.

Other components of the Polkadot ecosystem, like Centrifuge, Interlay, and HydraDX, have seen limited traction among developers and investors.

Crypto Analyst Bullish on Polkadot Price

Despite the current challenges, a notable crypto expert remains optimistic about Polkadot. In a recent post, Rekt Finance expressed a bullish outlook on Polkadot.

Market sentiment has hit rock bottom this year, but while others are dumping, I’m doubling down on my high-conviction picks. The global support level is prime for long-term coin accumulation. $DOT is one of my top L1 x AI plays.

Rekt Finance highlighted Polkadot’s entry into the artificial intelligence (AI) sector through platforms like Phala Network and Origin Trail. Phala Network offers AI coprocessor solutions with over 34k online workers and 150,880 vCPU in its network, enabling developers to build AI agents that integrate closely with on-chain smart contracts.

OriginTrail provides a verifiable internet for AI with its Decentralized Knowledge Graph (DKG), leveraging the synergies of crypto, internet, and AI technologies to address misinformation, data ownership, and intellectual property challenges.

Polkadot is also venturing into Real-World Asset (RWA) tokenization, anticipated to be a multi-billion dollar industry. Key RWA platforms in its ecosystem include Centrifuge, Energy Web, and Phyken Network.

While Rekt Finance remains bullish on Polkadot, its recovery will likely depend on the performance of Bitcoin and the vibrancy of its ecosystem. Stay informed with more updates and news on Global Crypto News.

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